The IA Tokens concept aims to revolutionize the real estate industry using Blockchain technology through the development of the IAT Platform.

Mar 16

Benefits and Differences Between IAT and NIAT

IAT is the first real estate project that specifically focuses on developing countries that displays market growth potential. The IAT ecosystem will consist of 2 main components which are the:

IAT Blockchain

NIAT Blockchain

IAT Blockchain

The IAT blockchain is specifically designed to provide a platform for cross-border and local transactions at a reduced cost. It will be connected to multiple NIAT blockchains with each individual NIAT blockchain catering to its own locality. In this case, the IA Tokens are subjected to market volatility since it will be considered as a cryptocurrency.

NIAT Blockchain

The Native Instant Assets Tokens (NIAT) will be an internal private token that resides on the respective local NIAT blockchain that caters to each individual country. Its main advantage to the end users is that it reduces volatility drastically as it will be pegged against the local fiat currency. Other benefits include the following:

1. Reduce exchange losses

Holders of their respective local NIAT will be able to send it to another user as long as the intended recipient has a wallet or account residing on the same local NIAT blockchain. This feature reduces the possibility of exchange losses since cryptocurrency is deemed to be much more volatile than the local fiat currency.

Example 1 — A consumer receives a payment request for goods and/or services provided in the form of ETH. However, since the cryptocurrency market is volatile and taking into account that consumers usually do not immediately make the required payment, the value of ETH against the local fiat currency would have likely changed in the next 24–48 hours or maybe even within a few hours. In this scenario, the merchant will feel short-changed if he/she receives lesser ETH quantity as payment due to the increase in ETH’s value. Likewise, the consumer will equally be unhappy if he/she ends up having to pay more in ETH quantity if ETH’s value has gone down instead.

Example 2 — Philippines is a country that receives close to $30 billion (USD) annually from overseas remittances. If someone were to send ETH back home to their family members in the Philippines for paying goods or services rendered from the platform today, the recipient will be subjected to the constant market volatility before actual payment has been made. However, the volatility can be eliminated if NIAT is being utilized in this transaction. IA Token holders can simply purchase NIAT at their preference since NIAT is being pegged against the local fiat currency and is a lot less volatile than cryptocurrency.

2. Scalability

A key factor of any successful business model is its degree and ease of scalability. By adopting a two (2) tokens system, the platform will be highly scalable since each respective country would have their own NIAT blockchain where the local NIAT will be pegged against the local fiat currency. In other words, only a new NIAT blockchain needs to be developed and integrated into the existing IAT ecosystem when we need to expand the platform to cater to a different market.

3. Interchangeability

The IAT ecosystem will allow end users to interchange between different local NIAT blockchain or back to IAT with ease by maintaining a liquidity pool. We believe that this will encourage the use of NIAT within the IAT ecosystem as well as improve the user experience for both the merchants and consumers.

4. Minimal Costs of Usage

NIAT resides on a local blockchain so there will be minimal or no costs at all when interchanging between IAT and NIAT, and since the liquidity pool is not meant to function as a centralized exchange it will not be charging the end users any “trading fees”.